In a significant development for the blockchain space, the Core Foundation has unveiled a new dual-staking model, integrating both Bitcoin and its native CORE token. This innovative approach builds upon the world's first non-custodial Bitcoin staking mechanism, positioning the Core blockchain as a bond-like layer for Bitcoin. The announcement marks a pivotal step in harmonizing Bitcoin's robust security with Core's dynamic ecosystem, aiming to transform Bitcoin from a static store of value into a productive, yield-generating asset.
What Is the Dual-Staking Model?
The dual-staking model allows participants to stake both Bitcoin and CORE tokens to earn rewards. This system enhances the existing non-custodial Bitcoin staking feature, which already enables Bitcoin holders to generate yields without relinquishing custody of their assets. By introducing CORE staking alongside Bitcoin, the model offers increased incentives for long-term network support and security.
Key Features of the New Staking Mechanism
- Non-Custodial Bitcoin Staking: Users retain ownership of their Bitcoin while earning yields, a first-of-its-kind feature in the blockchain industry.
- Dual-Reward Tiers: Stakeholders can opt to stake only Bitcoin for a base yield or stake both Bitcoin and CORE to access higher "dual-staking rates."
- Long-Term Incentives: Participants committing to longer staking periods receive proportionally higher rewards, encouraging network stability.
The Impact on Bitcoin and Core Ecosystem
This upgrade strengthens the economic synergy between Bitcoin and Core. Currently, approximately 55% of Bitcoin's mining hash rate is delegated to the Core network, safeguarding a ecosystem with over $135 million in total value locked (TVL) and 50,000 daily active users (DAU). The dual-staking model is expected to further secure the network and amplify value accrual for both Bitcoin and CORE stakeholders.
The introduction of a Bitcoin-native "risk-free rate," analogous to traditional finance's bond yields or Ethereum's staking returns, has already garnered substantial traction. Around 5,000 Bitcoin (valued at roughly $310 million at the time of writing) are staked on Core, earning yields paid in CORE tokens. This success paved the way for the latest dual-staking enhancement.
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Benefits for Participants
- Enhanced Yields: Dual-stakers earn higher returns compared to Bitcoin-only staking.
- Network Security: Increased staking participation fortifies the blockchain against attacks.
- Economic Alignment: Tighter integration between Bitcoin and Core promotes sustainable growth and value exchange.
Frequently Asked Questions
What is non-custodial Bitcoin staking?
Non-custodial staking allows users to earn rewards without transferring ownership of their assets. This means you retain full control of your Bitcoin while generating yield, minimizing counterparty risk.
How does dual-staking improve yields?
By staking both Bitcoin and CORE tokens, users qualify for higher reward tiers. The model incentivizes long-term commitment, with extended staking periods yielding greater returns.
Is staking Bitcoin safe on Core?
The network leverages Bitcoin's mining hash rate for security, with a majority of miners participating in delegation. The non-custodial nature of staking also reduces risks associated with asset custody.
What is the Bitcoin "risk-free rate" on Core?
It refers to the yield earned by staking Bitcoin on Core, designed to mimic traditional risk-free rates in finance. Returns are paid in CORE tokens, providing a predictable income stream.
Can I stake only CORE tokens?
The dual-staking model requires Bitcoin staking as a base. However, staking CORE alongside Bitcoin unlocks higher yields, creating a compounded reward structure.
How does this impact Bitcoin's utility?
This initiative expands Bitcoin's use cases beyond value storage, enabling it to function as a productive asset within a decentralized financial framework.